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Stocks J / Johnson Controls, Inc.

URL:  https://boards.fool.com/the-real-reason-that-jci-and-other-automotive-11555977.aspx

Subject:  Re: Minority business Date:  11/21/1999  10:10 PM
Author:  ANymn Number:  244 of 498

The real reason that JCI and other automotive suppliers are working with minority businesses is because the automotive OEM's are insisting on it. They are issuing mandates in the purchasing contracts that a certain percentage of new business has to come from minority suppliers.

Is this the right thing to do? I welcome the OEM's action from a corporate citizenship point of view, but I am worried that: 1) companies are not making these purchases on a best financial/product basis (which hurts the company's performance and reputation)
2) Many of the "minority" businesses turn out to be scams with figurehead ownership (which does not benefit those who need it)

I am skeptical that there are very many untapped suppliers for JCI (minority or otherwise) that can deliver a quality product at a competitive price.
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